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Zero tariffs on US goods to result in up to P6B in foregone revenues
The Philippines is estimated to incur up to P6 billion in foregone annual revenues from opening its markets to the United States with zero tariffs on selected products.
Finance Secretary Ralph Recto stated that the initial estimate ranges from P3 billion to P6 billion, depending on the scope of products included.
Key products expected to contribute to this revenue loss include automobiles, wheat, soy, and pharmaceuticals.
President Ferdinand R. Marcos, Jr. mentioned that details of the recent negotiations are still under discussion.
US President Donald J. Trump announced a 19% tariff rate for goods from the Philippines, a reduction from a threatened 20% but higher than the 17% previously announced.
Recto noted that zero tariffs on US wheat and pharmaceuticals could lead to lower consumer prices, citing the potential for cheaper pandesal.
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Philippine business groups are cautiously optimistic as the US announced a 19% tariff rate on Philippine goods, a reduction from a potential 20%, in exchange for the Philippines opening its market to US automobile imports with zero duties.
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President Ferdinand Marcos Jr. hailed a one-percentage-point reduction in U.S. tariff rates on Philippine exports to 19 percent, resulting from bilateral talks with U.S. President Donald Trump.
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Malacañang stated that the 19% US-imposed reciprocal tariff on Philippine exports will have limited effects on the country's economy, as confirmed by economists from ADB and CreditSights, and RCBC.
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Philippine Ambassador to the US Jose Manuel Romualdez stated that the final outcome of the trade negotiations between the Philippines and the US will be known by August 1.
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Filipino lawmakers have expressed concerns over a new trade agreement with the United States, finalized during President Ferdinand Marcos Jr.'s visit.
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